Cryptocurrency Platforms Throughout Asia Strengthen Defenses Amid Rising Cyberattack Wave
Digital asset platforms throughout the Asian region are implementing enhanced security protocols in response to increasing cyberattacks. Meanwhile, South Korea has pushed back its cryptocurrency taxation timeline to 2029. Asia Express.
Indian authorities sound alarm on AI-driven hackers attacking cryptocurrency platforms at 'machine speed'
The national cybersecurity authority of India has issued an alert regarding an artificial intelligence-enhanced threat actor that has intensified its assault on digital currency platforms and additional financial service providers, compromising wallet credentials and draining assets.
On Wednesday, the Indian Computer Emergency Response Team (CERT-In) classified the malicious actor as "CRAFTY FALCON" and specifically named cryptocurrency platforms among the targeted enterprises.
"The threat is active and ongoing. CSIRT-Fin continues to receive reports of successful attacks, including from NBFCs and fintech entities that had already received the earlier restricted advisories and had undertaken remediation," said CERT-In.
This alert contributes to mounting evidence showing cybercriminals deploying AI technologies against financial sector organizations. During October, CrowdStrike, a cybersecurity company, disclosed that an unknown attacker utilized ARTEX, an artificial intelligence penetration-testing utility also mentioned in CERT-In's alert, in conjunction with Claude Code and additional AI frameworks to compromise South Korean financial companies and extract sensitive information.
South Korea
South Korean authorities push for increased cold storage following massive Binance breach
The Financial Services Commission of South Korea has encouraged local cryptocurrency platforms to expand the percentage of holdings maintained in cold wallets following the $6.3 billion assault on Binance.
According to the FSC, an emergency session was convened with fellow regulatory bodies, cybersecurity organizations and digital asset service providers to assess security protocols.
The commission examined platform IT access management systems, wallet withdrawal authorization and verification processes, as well as administrator access rights. Additionally, it encouraged providers to expand the percentage of holdings stored in offline cold wallet infrastructure. However, South Korean regulations already mandate that platforms maintain no less than 80% of client crypto holdings in cold storage, with Upbit maintaining 99.17% of assets in cold wallets, trailed by Bithumb at 94.76% and Coinone at 85%.
Central bank of South Korea examines financial institutions' cryptocurrency risk exposure
The Bank of Korea has initiated a survey of 31 financial organizations regarding how a significant platform closure, extended cryptocurrency market decline or financial losses at a peer institution might impact their business activities.
A particular scenario questions how financial companies would be impacted if the nation's largest cryptocurrency platform by trading volume temporarily halted operations after a substantial security breach or comparable event.
Additional inquiries focus on a dramatic decline in digital currency valuations followed by an extended period of reduced trading activity, and the possible consequences if a different financial organization experienced significant losses stemming from a crypto-connected incident.
'Ridiculous claims': Pyongyang rejects involvement in $6.3B Binance security breach
Notwithstanding substantial evidence of numerous years of North Korea-associated hacking collectives stealing billions from digital currency platforms, Pyongyang asserts it had zero participation in the $6.3 billion Binance breach and suggested the possibility of American involvement instead.
"The FBI is trying to brand the DPRK as a 'cyber criminal state', claiming that it obtained information that a hacking organization 'supported' by the DPRK was involved in the incident," said Kim Yo Jong said. "But the US assertion is an absurd rhetoric and nothing new."
South Korea sets sights on 2029 for its next cryptocurrency tax postponement
The government of South Korea has endorsed delaying taxation on digital currency profits by an additional two years until 2029. Given the problematic track record of this tax measure, another postponement at that juncture would not be unexpected.
Hong Kong
Crypto.com plans to terminate Hong Kong retail app due to regulatory developments
Crypto.com has announced it will terminate its retail app operations in Hong Kong on Feb. 1, 2027, while simultaneously continuing to seek regulatory authorization for its institutional trading platform.
A representative from Crypto.com informed Cointelegraph that the organization would be discontinuing its retail app operations within Hong Kong. The representative indicated all impacted clients had been provided with advance notification and would be given guidance on account closure procedures and assistance to transfer their assets.
Almost three years have passed since the local subsidiary filed an application for licensing and the status continues to be "deemed-to-be-licensed" — representing a provisional status instead of complete regulatory authorization.
Animoca Brands secures final authorization for Abu Dhabi asset management operations
Hong Kong-based Animoca Brands has obtained authorization to manage investment portfolios for institutional clients in Abu Dhabi.
The licensing, provided to its subsidiary Animoca Asset Management (AD) Limited by Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA), permits it to manage portfolios that aggregate capital from professional investors instead of retail participants.
This represents an expansion of the asset management division of an organization that originated in mobile gaming before transitioning into blockchain-based gaming, participated in the Metaverse trend and became a significant participant in venture capital investing.
Hong Kong extends tokenized settlement to around-the-clock operations, prepares stablecoin testing
Hong Kong has broadened its Project Ensemble trial program to enable continuous settlement of tokenized transactions, while the city's monetary oversight body prepares to incorporate regulated stablecoins into experimental programs involving tokenized sovereign debt instruments.
Hong Kong launches secondary market access for tokenized investment products
Hong Kong has formally launched secondary market trading capabilities for SFC-approved Tokenized Funds via licensed trading platforms. Two China Asset Management money-market products are now available for continuous trading through PantherTrade and the Futubull application.
Thailand
Thailand moving to restrict Bitget access in December for operating without authorization
Thailand's securities oversight authority has submitted a criminal complaint targeting BG Limited, the entity operating cryptocurrency platform Bitget, for purportedly conducting business without proper licensing. Thailand's Securities and Exchange Commission will restrict access to the platform's website and mobile application starting December 5.
The oversight body recommended users take appropriate action concerning holdings maintained on the service prior to the specified deadline.
Australia
Australian central bank increases rates to 18-year peak as artificial intelligence expansion, power expenses drive inflation
The central bank of Australia increased its interest rate by 25 basis points to 4.85% on Tuesday, cautioning that price inflation would remain heightened throughout a substantial portion of 2027 as power expenses and AI-connected investment contributed to pricing pressures.
The Reserve Bank of Australia's monetary policy committee voted 6–3 supporting the increase, while three committee members favored maintaining rates at 4.60%.
The institution delayed its projection for inflation to reach the upper boundary of its 2% to 3% target band until the latter part of 2027, approximately three quarters beyond prior expectations.
Strategies for Australian Bitcoin investors to circumvent 2027's unexpected CGT increase
The decision by the Australian government to eliminate the 50% capital gains reduction for all investment types in the May budget arrived as a significant surprise for digital currency investors. The revised system effectively doubles the taxable portion of a capital gain, less a modest adjustment for inflation.
Certain Australian cryptocurrency investors are implementing extreme strategies — such as Finder's founder and crypto enthusiast Fred Schebesta who is moving to Singapore which provides 0% CGT, declaring the tax modifications were a "killer blow." However, less extreme approaches exist to minimize CGT obligations including establishing a self managed super fund (SMSF), creating a corporate entity to conduct crypto transactions at the corporate tax rate, or anticipating the opposition will undo the modifications following the upcoming election.
Japan
JPYC celebrates first anniversary but falls short of goal by three quarters
The Japanese yen stablecoin JPYC reached its first anniversary with a circulation volume of approximately 3 billion yen—one quarter of its internal objective.
BlackRock and SBI execute yen-stablecoin tokenised fund memorandum of understanding
BlackRock, BlackRock Japan, SBI Holdings and Startale have executed an MOU to investigate linking tokenized money-market products with SBI's JPYSC yen stablecoin.
Vietnam
Vietnamese regulations mandate cryptocurrency platforms report 'incidents' within 24-hour window
Regulations from the Ministry of Finance mandate that cryptocurrency platforms authorized in Vietnam must report security breaches and remediation strategies within 24 hours.
Singapore
Five major financial institutions establish tokenization standards organization in Singapore
Five prominent financial institutions—comprising HSBC, JPMorgan's Kinexys, MUFG, Société Générale-Forge under BNP Paribas, and Standard Chartered—have established the Global Layer One Organization (GL1) in Singapore. The nonprofit entity seeks to advance standards for tokenized financial marketplace infrastructure.